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CoinShares International Limited (Nasdaq First North Growth Market: CS; US OTCQX: CNSRF) ("CoinShares"), Europe's largest and longest standing full-service digital asset investment and trading group today announced financial results for its second quarter ended 30 June 2022.
Jean-Marie Mognetti, Chief Executive Officer of CoinShares said:
"We are pleased to announce a resilient performance during this second quarter, despite the ongoing turbulence in the digital asset arena. While our Asset Management business continued to generate solid profit, the Capital Markets business experienced a one-off loss of £17.7 million following the de-pegging of US Terra. The financial impact of this episode, despite being relatively small when compared to the losses incurred by other players in our industry, has of course had a material impact on our quarter. Adjusted EBITDA for the quarter stands at a loss of £8.2 million. Despite the loss incurred in Q2, our year to date performance evidences a robust underlying business, with Adjusted EBITDA of £10.5 million and total comprehensive income of £20.1 million.
In light of the market turmoil we have reviewed our risk profile and moved into a more defensive mode. We have commenced taking steps to reduce both our cost base and various exposure across the group and this conservative approach will enable us to preserve our capital, ready to take advantage of opportunities in the digital asset space as they emerge.
In the meantime, we continue to develop the group steadily, with a series of important product launches during the quarter and more planned for the rest of the year. Most importantly we have completed the acquisition of Napoleon Asset Management following approval from the French regulator in July which brings with it an AIFMD/MiFiD licence, opening up a wealth of new development opportunities. Our strategy also remains on track, including our plans to uplist our shares onto the main Nasdaq market in Stockholm in due course.
CoinShares has sufficient resources to navigate the markets during this volatile time thanks to an effective strategy, a robust balance sheet and a seasoned, world class team. The breadth and depth of our experience in digital assets ensures that we can take a long-term view as we continue to build the future of investing."
Q2 2022 financial highlights
- Total revenue for the quarter of £14.2 million (Q2 2021: £19.6 million)
- Adjusted EBITDA loss of £8.2 million (Q2 2021: £28.6 million) following a one-off loss of £17.7 million from the liquidation of Group's holdings in UST.
- Total comprehensive loss for the quarter of £0.1 million (Q2 2021: income of £26.6 million),
Q2 2022 operational highlights
- Important steps taken towards the Group's long-term strategy, including progressing plans to uplist CoinShares onto the Nasdaq Stockholm Main Market and completing the integration of our consumer platform, Napoleon.
- Continued investment in the asset management division, having launched five new CoinShares Physical products in Q2: CoinShares Physical FTX Token, CoinShares Physical Chainlink, CoinShares Physical Uniswap, CoinShares Physical Staked Matic, and CoinShares Physical Staked Cosmos.
- Gained the Alternative Investment Fund Manager (AIFMD/MiFID) licence; one of the most rigorous European regulations for Asset Managers and a key component in CoinShares' ambition to become the leading investment group in the digital asset sector.
- Undertaken a thorough review of our risk management procedures and improved the trading platform to ensure greater transparency following the losses incurred by the UST de-pegging.
For the full CoinShares Q2 report, follow this link.
